Which is More Important Residual Income Versus Rat Race Income?

If you want out of the rat race, you have to create residual or passive income. What you will quickly learn about rat race income (i.e. a job), is that it’s very important to have it, and keep it, until you don't need it. Some people think that residual income is...

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If you want out of the rat race, you have to create residual or passive income. What you will quickly learn about rat race income (i.e. a job), is that it’s very important to have it, and keep it, until you don’t need it.

Some people think that residual income is more important so they let their rat race, or job income go too soon. They fail to continue on their rat race or job income, then they get upside down and they realize that they are in a terrible position. Therefore, you must realize that rat race income is important.

What other kind of incomes are there? Residual income or passive income. If you’re trying to get out of the rat race income, you don’t want to go with the least effective passive income. If you’re trying to get out of the rat race income, you hope that you’re putting your money into the most aggressive, the smartest, the most residual, the highest ROI residual income that you can get into.

Some people make the mistake of trying to put money in a savings account because they realize that it’s one type of passive income that they can create. Let me tell you, it’s nothing like the passive or residual income of having an organization that produces $400,000 in premium every single month. That is true residual, that is true passive, that is the machine with wings, that is the machine that can fly. That is the residual income that not only gets to the point where you’re making 150,000 a year, 600,000 a year, but it maintains itself and can even go up given the proper motivation and stimulation that you can put into
that organization.

So, what is most important?

It depends on the timing of the situation. You need someone to help you determine the timing of putting money into residual income or putting time and effort into cash flow/rat race/job income.

Build your residual income machine with National Agents Alliance: www.NAALeads.com.

Andy Albright
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www.NAALeads.com

7 comments
  1. Connie Styers
    Connie Styers
    October 5, 2009 at 5:07 pm

    Great words of wisdom! I’ve got 3 college children. This is the education I want my 24, 23, 21 year old kids to learn NOW while they are young. Build a future with Residual Income. They are not teaching this in college.

    I am going to have each of them follow your blog. Keep sending more of the same.

    Connie Styers

    Reply
  2. Ken Burns
    Ken Burns
    October 12, 2009 at 10:15 pm

    Only wish I had learned this 25 years ago!

    Reply
  3. Laura Ceville
    Laura Ceville
    October 23, 2009 at 9:26 pm

    I think it’s also important to address the fact that residual income will bring you something called lifestyle–having both money and the time to enjoy it. It’s the difference between living a “good” life and a GREAT life! I’m game!

    Reply
  4. Chadwick Ray
    Chadwick Ray
    October 28, 2009 at 1:40 pm

    I am fired up. Every time you speak on this subject I get more inspired. This is Rich Dad Poor Dad, juiced up, and taken to a whole new level. Thanks for giving us the tools. Being 25 years old, I am going to take this wisdom, and I plan to be a heavy hitter… NOW!

    Reply
  5. Sid Zagri
    Sid Zagri
    October 31, 2009 at 11:29 am

    This is such POWERFUL MENTORSHIP. I have been involved in other businesses where the leaders simply did not share this information, much less in ways that INSTRUCT US on HOW TO APPLY it within OUR BUSINESS the way you do!!

    As I have begun to invest in my business by placing ads to attract new business partners, I am attracting more and more quality folks to my business. In fact we COMPLETELY RE-TOOLED OUR BUDGET to focus as much of our resources as possible on RECRUITING NEW FOLKS. I am booking at least 8 appointments a day (15 mins on the phone like you and John taught us at leadership), 4 days a week right now! So SIMPLE and yet extremely POWERFUL.

    In fact just this past week we had 2 NEW AGENTS COMPLETE AGENT CERT CLASS who will be OUT IN THE FIELD this next week PROTECTING FAMILIES! This is a great SYSTEM that WORKS!

    THANKS ANDY!!!

    Reply
  6. James Hill
    James Hill
    November 12, 2009 at 2:43 pm

    A lot of people have a hard time understanding why we don’t buy a brand new car or a bigger house “if you are making all this money.” Explaining to them that the goal is for our residual income to pay for those things rather than us to keep having to go to work and being slaves to our purchases really gets their gears turning! Delayed gratification makes things MUCH easier in the long run and we can get the car and house that we actually WANT and not have to SETTLE for the one we can afford with our J.O.B.

    Reply
  7. Andy Albright
    Andy Albright
    December 2, 2009 at 10:13 am

    I know what you mean James! I made sure I was COMPLETELY out of debt before I started buying nicer toys. Now I know it is hard to buy a car without financing, but really, other than a house or some investments, you never need to borrow for depreciable assets.

    The biggest problem people have is EGO! They are worried more about their neighbors than their FAMILY & FUTURE! An S55 Mercedes or a CLK500 WOLFPACK red is awesome. But one of them toy Toyotas 🙂 will do until YOU can pay CASH for the real thing 🙂 True satisfaction comes from doing your best, and part of doing your best is being responsible with money. The toys don’t mean as much as peace of mind and financial freedom!!

    Reply
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